S1: Under Ind AS 115, a contract with a customer can be combined with another contract and accounted for as a single contract if they are negotiated as a package with a single commercial objective. S2: If the amount of consideration in one contract depends on the price or performance of the other contract, they must be combined. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: Under Ind AS 115, a contract with a customer can be combined with another contract and accounted for as a single contract if they are negotiated as a package with a single commercial objective. S2: If the amount of consideration in one contract depends on the price or performance of the other contract, they must be combined. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. Both S1 and S2
C. S1 only
D. S2 only
Answer: Option B
Solution (By JKSSB Mock Tests)
Both statements are correct as per Ind AS 115. Contracts must be combined if they are part of a single commercial package, or if the consideration in one depends on the other, or if the goods/services are a single performance obligation.

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Practice More Accountancy and Book Keeping Questions

Question #1
S1: SEBI regulates the primary and secondary capital markets in India. S2: SEBI was established by a legislative act of Parliament. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S1 only
C. Both S1 and S2
D. S2 only

Correct Answer: Option C


Explanation:
SEBI regulates both primary (new issues) and secondary (trading) markets to protect investors. It was initially established in 1988 and later given statutory powers through the SEBI Act, 1992. Both statements are correct.

Question #2
Provision for doubtful debts is created based on:
A. Convention of conservatism
B. Convention of consistency
C. Convention of disclosure
D. Convention of materiality

Correct Answer: Option A


Explanation:
Creating provision for doubtful debts is an application of conservatism, anticipating possible losses.

Question #3
Which of the following is NOT a step in the accounting cycle?
A. Preparing a budget
B. Posting
C. Preparing a trial balance
D. Journalizing

Correct Answer: Option A


Explanation:
Budgeting is a management accounting tool for planning, not a step in the standard financial accounting cycle which ends with financial statements.